Introduction

TDS (Tax Deducted at Source) is an indirect system of deduction of Tax by Indian authorities according to the Income Tax Act, 1961 at the point of generation of income tax. A TDS Return is a quarterly statement which has to be submitted to the Income Tax Department of India. It has details of TDS deducted and deposited by you. TDS Return/statement that has been filed in the following forms: 26Q, 24Q and 27Q with the help of media that is detectable by a computer of a piece of data storage equipment such as a CD-ROM or Pen Drive, but in the format permitted under the Income Tax laws in India. The file has to be completely filled and filed for each quarter of a fiscal year. You can do this through TDS Return filing software by uploading the file.

TDS Return requirement

It is a mandatory step to file your TDS Return within a specific period of time. The person is liable to pay a penalty for not submitting the e-TDS Return in due time. If you are any one of the following entities, you required to file your e-TDS return in Chennai quarterly:

Process for TDS Return

First of all, go to LegalRaastaand click the ‘TDS Return’ icon. Next click on the “FILE RETURN” option for Free TDS Return Filing and the process begins.

Step 01: Login

First, you have to log into the LegalRaasta TDS Account. If you don’t already have an account, you can simply sign up and carry on. All you have to do is fill your contact details and type a password and you’re all set. Now you can get started.

Select your TDS Return Filing Software Package

There are several ways for filing TDS online. You can file your TDS online by yourself free of cost or you can select a LegalRaastaPackage to assist you in TDS Filing. The types of packages you can choose from are given below:

Package

Free Demo

Software (Standard Edition)

Assisted Filing (Single)

Assisted Filing (Package)

Price

Free

4999

799

2499

Features

First 4 Return free

FVU Generation

Challan verification

PAN verification

For 1 year

Unlimited return

FVU Generation

Challan/ PAN verification

For 1 year

Our CA files your return

FVU submission w/ NSDL

Challan/ PAN verification

4 Returns

Our CA files your return

FVU submission w/ NSDL

Challan/ PAN verification

Step 02: Add a Deductor

The first thing you have to do is add a deductor. Click on the “Add Deductor” button. He is a person who deducts the TDS on your behalf and deposits it with the CBDT. You get a certificate from the deductor for paying the TDS. Additionally, you also have the option of importing your list of deductors from an Excel file/TDS file.

Fill in the Basic information like Company Name, TAN (Tax Deduction and Collection Account Number), TRACES User ID, TAN Registration Number, PAN Number, Branch/Division and Deductor Type. You can choose from several Deductor Types. They are:

Central Government

Body of Individuals

Statutory Body (Central Government)

Statutory Body (State Governments)

Firm

Autonomous Body (Central Government)

Autonomous Body (State Governments)

Artificial Juridical Person

Company

Local Authority (Central Government)

Local Authority (State Governments)

Branch/Division of Company

Association of Person (AOP)

Individual/HUF

State Government

Association of Person (Trust)

Then click on “Save and Exit” and you will be directed to the “Deductor Details” tab. Now, fill the Deductor Address and contact details. Then click on “Save” and you will be directed to the Responsible Person Details tab. Now fill in the details of the person who is actually deducting the TDS for the payments made by you.

Remember, that all the details marked with a red asterisk must be compulsorily filled, without which you will not be able to save any details. If you want, you can also add or edit your list of deductors.

Step 03: Add and Verify Challan Payments

After filling the deductor details, click on “Get Started” and begin filing the TDS Return of this deductor. Now you can choose from the type of TDS Return Form to file, the Financial Year this deduction relates to and the relevant Quarter. There are 4 types of Forms you can file. They are:

Form

Feature

24Q

For TDS Payments like Salary

26Q

For TDS Payments other than Salary

27Q

For TDS Payments made to Foreigners and NRIs other than Salary

27EQ

For TDS Payments of Tax Collected at Source by Deductors (in case you are the Deductor)

If TDS Return already filed individual wishes to make the changes then, you can select the File Correction checkbox and now click on “Create Return”. A person can manually fill in the Challan details or you can import the details from Excel or verify the Challan with OLTAS (this is done by directly verifying your Challans with the CBDT by linking your details with the government portal (NSDL). Then save the Challan details and move to adding deductees.

Step 04: Add Deductees /Employees

A Deductee is a person on whose behalf you deposit the TDS with the CBDT. Similarly, as with the Deductors list, you can add the Deductees list. Existing users can even add, edit or delete the deductees from their last TDS Return Filing. Now click on the “Verify Return” tab.

Step 05: Verify TDS Return and Generate FVU

After you have added the list of deductees, by clicking on the “Verify Return” tab, the amount collected from the deductees and the amount deposited by you with the CBDT will be matched and verified. If there are any of the following errors

Deductor’s details,

Deductee’s details,

Incorrect deductions,

Late deductions,

Any mismatch in the amounts collected from deductees

The amounts deposited with the CBDT

Penalty for late filing of the TDS Return filed,

The software will list these issues and let you correct them after that click on the “Submit Return” tab then, you can generate the File Validation Utility (FVU) File. It is an Excel file used by CBDT for auditing your TDS Return. After that, you can download FVU file and file your TDS Return by two ways.

Step 06: TDS Return Filing

All the process up to this point was to generate the FVU file. There are two ways to file TDS Return. You need to submit the FVU file along with Form 27A (Form 27A is an acknowledgment that you have filed your TDS Return to the best of your knowledge) to a TIN Facilitation Centre.

Physical Filing

If you want to File TDS Return by yourself manually, you can take the FVU file in a Pen Drive, print and sign Form 27A and physically submit these at a TIN Facilitation Centre near you. You will not be charged anything for the same.

Online TDS Return Filing

Instead of going through the time-consuming procedure, there is a simple online process. After generating the FVU file, you can, for a nominal fee of Rs.200, ask LegalRaasta to submit the TDS Return at the TIN Facilitation Centre. LegalRaasta will mail you the Form 27A acknowledgment; you just have to send LegalRaasta the signed copy of the Form.

Step 07: Work Completion

After submitting the Form, you can click on “Generate Report” and download the Form for record purposes.

In case you are confused about TDS Return Filing as a deductor, feel free to consult the experts at LegalRaasta. You can get comprehensive assistance with our TDS Return Filing Software which supports TDS on Salary payments (Form 24Q), Rent, Interest, Commission and other Non-salary transactions (Form 26Q), NRI (Form 27Q) and TCS (Form 27EQ).